Welcome to Strategic Management with Professor Rust v Please choose a seat you think you would like for the entire semester v Sign the Completion of Prerequisites.
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Welcome to Strategic Management with Professor Rust v Please choose a seat you think you would like for the entire semester v Sign the Completion of Prerequisites Form v Look over and discuss the Syllabus v Introduction to the Course v Overview of Strategic Management
STRAT. E. GY (strat’ e je) n., pl. -ties [Gr. stratos, army + agein, to lead] 1. orig. the art of the general 2. the science of planning and directing military operations
Strategic Management v Consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. v Why do firms outperform others? v How do firms outperform others?
Three Ongoing Processes v Analysis: The Strategic Goals –Vision –Mission –Objectives –Internal and External Environments v Decisions: Corporate Leaders u What industry(ies)? u How do we compete? v Actions: Implementing Strategies u Allocation of resources u Organizational design
Four Key Attributes v Directs overall organizational goals v Decision makers consider stakeholder needs v Consider long-term and short-term perspectives v Recognizes trade-offs between efficiency and effectiveness
Hierarchy of Strategy Corporate-Level: What business to be in Business-Level: How to compete in that business Functional-Level: How best can each function support the business-level strategy
Stakeholders Firm Groups who are affected by a firm’s performance and who have claims on its performance Product Market Organizational Capital Market Stock market/Investors Debt suppliers/Banks Owners Board of Directors Employees Managers Non-Managers The firm must maintain performance at an adequate level in order to maintain the participation of key stakeholders Primary Customers Suppliers Unions Communities
Social Responsibility v Strives to improve the overall welfare of society. v Actions taken by the business are for the betterment of society. v Use of ‘triple bottom line’ accounting model –financial capital and measures –ecological and material capital –human and social capital
The pace of change is relentless.... and increasing Traditional industry boundaries are blurring...such as Computers Telecommunications New Competitive Landscape Rapid technological changes Rapid technology diffusions Dramatic changes in information and communication technologies Increasing importance of knowledge Fundamental nature of competition is changing
The global economy is changing Traditional sources of competitive advantage no longer guarantee success New keys to success include: Flexibility Innovation Integration Speed New Competitive Landscape People, goods, services and ideas move freely across geographic boundaries New opportunities emerge in multiple global markets Markets and industries become more internationalized
Specialized Bicycle Components v What is SBC’s mission statement? v What are SBC’s overall goals? v What is SBC’s motto? v How does SBC display social responsibility?
Specialized Bicycle Components v What is SBC’s mission statement? u To provide the best ride possible to a wide section of riders v What are SBC’s overall goals? u Customer Service u Quality u Innovation u Teamwork u Profitability
Specialized Bicycle Components v What is SBC’s motto? u Innovate or Die! v How does SBC display social responsibility? u Weighs needs of stakeholders u sponsorships u wilderness access campaigns
Write on the Information Card: v Name v Phone Number v City/town where you live during the week v E-mail v Major v Your ideal job v On the back tell me: – What you want to learn in this class. – The grade you wish to earn.